8:36pm: According to Wojnarowski, Knicks owner James Dolan is sensitive to the public perception that GM Masai Ujiri “bamboozled” him in the Carmelo Anthony trade, and the chance of getting criticized for giving up too much in a deal for Lowry has become a hurdle in these talks. Toronto is said to be discussing deals for Lowry with an ever-growing list of teams.

Wojnarwoski adds that New York doesn’t want to include either Shumpert or Hardaway Jr. in discussions (they reportedly refused a proposal involving the former along with Felton), and without Shumpert or a draft pick going to Toronto, there isn’t any traction to a deal. Also, the Knicks are believed to still be hesitant about trading a future first round draft choice to the Raptors, and there seems to be doubt over how long they’ll keep that option on the table.

As for the Nets’ interest, Wojnarowski says the team isn’t willing to include either a 2020 first-round pick or one of its young players – including Mason Plumlee – in a trade package.

4:03pm: Toronto is insisting on a first-rounder from the Knicks in part because taking on Felton would leave the Raptors with more long-term money, according to Marc Stein of ESPN.com. Felton’s deal runs through 2015/16, which is a player option year, while Lowry is on an expiring contract. The Knicks would like to save Iman Shumpert and Tim Hardaway Jr. for another deal, Stein adds (Twitterlinks). The Raptors are seeking two out of three assets from the Knicks: Shumpert, Hardaway, or a first-rounder, Stein tweets.

3:46pm: The Knicks are refusing to give up a first-round pick, and that’s gumming up the talks between the two teams, tweets Chris Broussard of ESPN.com.

3:24pm: The Nets represent the strongest competition to the Knicks for Kyle Lowry among an “ever-growing list of teams” going after the Raptors point guard, writes Adrian Wojnarowski of Yahoo! Sports. New York’s latest offer includes Metta World Peace and a 2018 first-round draft pick to go with Raymond Felton, according to Wojnarowski, who indicates that the Knicks are wavering on their willingness to include the pick.

The Raptors are reportedly asking for a quality young player or a first-round pick, according to Chris Mannix of SI.com, who says the price could be too high for Brooklyn’s tastes (Twitter link). Still, Brooklyn’s interest is legitimate, Mannix writes, and Wojnarowski hears the Raptors are investigating Bojan Bogdanovic, a former second-round pick whose rights the Nets hold.

Lowry is apparently interested in heading to New York, and Wojnarowski says he’s spent most of the season hoping for a trade out of Toronto. The Warriors are another team with interest in Lowry, but the odds that the Warriors land him are “very very slim,” according to Marcus Thompson of the Bay Area News Group, who doesn’t think Golden State has much to offer the Raptors (Twitterlinks). Lowry has fans in the Timberwolves front office, but the team doesn’t have enough assets or financial flexibility, and isn’t in the mix for the point guard, according to Darren Wolfson of 1500 ESPN Twin Cities (on Twitter).

The Knicks can’t trade World Peace until Sunday, since he signed a contract this past offseason. The Raptors would probably buy him out of his two-year, approximately $3.5MM deal if they traded for him, tweets Ryan Wolstat of the Toronto Sun.